Everyone has to pay taxes, but minimizing taxes can have a significant impact on your wealth over the long term. With some planning and help from our tax strategists, Mirador clients can potentially reduce the amount of taxes they owe.
This active approach to your tax planning in Calgary is just one of the ways we take a holistic approach to your investment and wealth management. We know that tax needs vary by client and that your tax advisor might not have a full financial snapshot of your investments to enable them to implement the most effective tax plan.
We work closely with your tax advisor to identify, recommend, and implement strategies that will minimize your family’s taxes. This includes identifying opportunities for income splitting, analyzing the optimal timing for each income stream, family trusts, corporate holding companies and other strategies.
Not only do we liaise with your tax advisor, Mirador's Income and Stability Canadian and U.S. programs are tax efficient in and of themselves. Since our Income and Stability fund's primary focus is on dividends, when the Canadian program is held in non-registered accounts in Canada you will be able to utilize the dividend tax credit resulting in a much lower marginal tax rate for dividends than for interest. To make the same after-tax income as the recent Mirador Income and Stability Fund distribution you would need to buy a GIC or bond yielding almost 9%.
For U.S. citizens participating in the Mirador Income and Stability U.S. program, substantially all the dividends will meet the criteria to be classified as Qualified Dividends and thus taxed at a much lower rate than interest. It’s not just what you earn, but what you keep in your pocket after taxes that counts. For Canadians participating in the Mirador Income and Stability US program to create US cash inflow to cover US expenses, the dividends are not as tax efficient as their Canadian counterparts. However, the benefit of avoiding exposure to foreign currency fluctuations often offsets the less efficient taxation.
Tax planning is a fundamental part of financial management and there are several key reasons why it is important to engage in proactive tax planning. Get the tax advice you need from Mirador Corporation.
Tax planning is a key element in wealth accumulation strategies. By optimizing investment decisions and minimizing tax implications, you can enhance the growth of your assets over time, which facilitates the accumulation of wealth and leads to increased financial independence, retirement readiness and the ability to achieve long-term financial and lifestyle objectives.